Business Rules Classification and Categorization

Business Rules Classification and Categorization: A Comprehensive Guide

Why Business Rules Classification Is Important

Business rules classification is crucial for effective business analysis because it helps organize, manage, and implement the complex web of rules that govern business operations. Proper classification:

• Ensures consistency in business processes
• Facilitates easier maintenance and updates of rules
• Supports better communication among stakeholders
• Provides structure for rule repositories
• Enables more precise requirements documentation
• Supports effective automation and system implementation

What Is Business Rules Classification?

Business rules classification is the systematic categorization of business rules into logical groups based on their characteristics, purpose, or impact on the business. Business rules themselves are statements that define or constrain aspects of a business, intended to assert business structure or control or influence business behavior.

The BABOK Guide and PMI-PBA framework recognize several classification schemes for business rules, each serving different analytical purposes.

Common Classification Schemes

1. By Type:
• Definitions (Terms): Define business concepts (e.g., "A customer is an individual who has purchased a product within the last 18 months")
• Facts: State relationships between concepts (e.g., "Each order must be placed by one customer")
• Constraints: Restrict actions or states (e.g., "Credit limit must not exceed $10,000")
• Derivations: Calculate values from other data (e.g., "Discount is calculated as 10% of total order value for orders over $1,000")
• Action Enablers: Trigger specific actions when conditions are met (e.g., "When inventory falls below 100 units, create a purchase order")

2. By Source:
• External: Rules imposed by legislation, regulations, standards
• Internal: Rules originating from company policies, procedures

3. By Volatility:
• Static: Rules that rarely change
• Dynamic: Rules that change frequently

4. By Enforcement Level:
• Mandatory: Must be enforced in all circumstances
• Guideline: Should be enforced when possible
• Suggested: May be enforced at discretion

5. By Application:
• Computation Rules: Calculate values
• Timing Rules: Define when events should occur
• Constraint Rules: Define restrictions
• Inference Rules: Define logical implications

How Business Rules Classification Works

The Classification Process:

1. Identify business rules from various sources (stakeholder interviews, documentation, observation)
2. Analyze each rule to understand its purpose, impact, and relationships
3. Assign appropriate categories based on selected classification scheme(s)
4. Document classifications in business rules catalog or repository
5. Review and validate with subject matter experts
6. Maintain and update as business evolves

Example of Classified Rules for an E-commerce System:

• Term: A Silver Customer is one who has spent between $500-$1000 in the past year
• Fact: All customers must have a unique email address
• Constraint: Product returns must be initiated within 30 days of delivery
• Derivation: Shipping cost is calculated as $5 plus $0.50 per pound
• Action Enabler: When a customer places their third order, automatically upgrade their status to Silver

Exam Tips: Answering Questions on Business Rules Classification and Categorization

1. Know the standard classifications: Memorize the major classification schemes and their categories (type, source, volatility, etc.)

2. Practice identifying rule types: When given a business rule, quickly determine if it's a definition, fact, constraint, derivation, or action enabler

3. Understand overlapping classifications: Remember that a single rule can fall into multiple categories across different classification schemes

4. Look for keywords that signal rule types:
- "is defined as" or "is a" (Definition/Term)
- "must," "should," "cannot" (Constraint)
- "is calculated as" (Derivation)
- "when... then..." (Action Enabler)

5. Focus on context: The business context often provides clues about rule classification

6. Pay attention to rule attributes in questions - source, changeability, and enforcement level

7. For scenario-based questions:
- Identify all stated and implied rules first
- Classify each systematically
- Consider how they interrelate

8. Remember BABOK terminology may differ slightly from PMI-PBA terminology - focus on understanding concepts rather than specific terms only

9. Practice tracing impacts: Be able to describe how rule changes might affect business processes and systems

10. Commit examples to memory: Having clear examples of each rule type helps answer classification questions quickly

By mastering business rules classification, you'll improve your ability to analyze requirements systematically and communicate effectively with stakeholders about business logic and constraints that drive system behavior.